AUI3702 Latest exam pack questions and answers and summarized notes for exam preparation. Updated for 2024 exams . For assistance Whats-App.0.6.7..1.7.1..1.7.3.9 . All the best on your exams!!
INSTRUCTIONS
• The Invigilator
o Keep your cell phone fully charged for the duration of the assessment.
o Log into The Invigilator app if you have not done so yet. Your cell phone has to be
connected to the internet to log in.
o Scan the QR code given below when the examination starts. If you encounter difficulty
in scanning the QR code, you can enter the QR access code indicated at the bottom
of the QR code to start the online invigilation.
o Once you have scanned the QR code, avoid any disturbances by putting your phone
on airplane/flight mode. No internet connection is needed during the assessment.
o Keep The Invigilator open at all times on your cell phone during the assessment.
o You may place your cell phone next to you. Your cell phone does not need to face you,
but it should be close enough so that you can hear the notifications from The Invigilator.
o The Invigilator will notify you when an action is required.
o To ensure that you can hear the notifications, do not put your cell phone on silent mode
and make sure that the media volume is turned up.
o When an action is required, a notification beep will be heard and an instruction will be
visible.
o Take note that once the examination time is over, you should first focus on scanning
your answer script and uploading it to the assessment platform. The uploading of your
script is time sensitive.
o Once you have uploaded your script to the assessment platform, you may switch on
the data on your cell phone to start the uploading process on The Invigilator.
o Good luck!
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, CONFIDENTIAL
Page 2 of 7 AUI3702
OCTOBER/ NOVEMBER 2023
• The examination
o Save a copy of the examination paper before you start answering the questions.
o Keep the honesty declaration in mind throughout this examination session.
o Answer the questions in a handwritten or typed format on your computer, convert
your answer script to PDF and then upload the script to the assessment platform as a
PDF file.
o Write legibly and clearly and do not password-protect your PDF file.
o A virus-infected file will not be marked.
o You may not submit your answer script by e-mail.
o Verify the file details before final submission.
CONFIDENTIAL
Question Main topic MARKS
1 Inventory cycle: audit objectives, weakness and 50
recommendations, audit finding
2 Revenue cycle: audit risk and audit engagement procedures 25
3 Payroll cycle: audit engagement procedures 25
100
Please note:
Although the primary purpose of the examination is to test the candidate’s knowledge of and
ability to apply the subject matter, the examiners will also consider the candidate’s ability to
organise and present such knowledge in acceptable written English.
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, CONFIDENTIAL
Page 3 of 7 AUI3702
OCTOBER/ NOVEMBER 2023
QUESTION 1 50 MARKS
Part A
Cosmic Cosmetics Limited (CCL) is engaged in the distribution of cosmetics. Its
customers include a wide range of pharmacies and department stores. The company
does not manufacture its own products. It purchases raw materials from suppliers and
sends the materials to third party manufacturers for mixing and packaging. Once
packaged, the products are returned to CCL for despatch to customers.
As you are the internal audit senior assigned to review the company’s purchasing
system, you have compiled the following review notes:
• Inventory records for raw materials are maintained on a stand-alone PC system.
This system is updated by an inventory clerk each time an inventory item moves.
Issues from inventory are only made and recorded in response to a production
order.
• This production order is prepared by the production controller. It specifies the raw
materials to be issued to a manufacturer in order to enable them to produce the
required finished product. Three copies of each production order exist. Copy 1 is
retained on file by the production controller. Copy 2 is sent to the inventory clerk.
Copy 3 accompanies the materials to the manufacturer’s premises.
• When the inventory clerk receives the production request, he immediately updates
the raw material records showing that the inventory has been despatched to a
manufacturer. The inventory records do not state to which manufacturer they have
been sent. The production request form is then passed to the stores' department,
where it is used as a picking slip. Items are marked off on the form as they are
taken off the shelf. Once all the items are packed and ready for despatch, copy 2
is returned to the inventory recording section, where it is filed.
• Reorder levels are set for each raw material type. Once an inventory item issue
causes the inventory level to fall below the reorder level, the inventory clerk
immediately raises a purchase order and mails it to the supplier. Suppliers are
specified for each raw material item and have not been changed for four years.
Lead time varies between seven to ten days.
• All suppliers are reliable and short or late deliveries have not been a problem in
the past. However, in recent months a number of raw material stockouts have
occurred.
• On receipt of the raw materials by the receiving department, a goods received note
(GRN) is drawn up. This is a three-part document. Copy 1 is retained on file at the
receiving department. Copy 2 is sent to the inventory clerk. Copy 3 is sent to the
accounts department. GRN documents are printed and prenumbered.
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